When critical PHP security flaws push governments and tech giants to scramble for server fixes, it underlines a simple truth: the world leans on the hidden hardware that keeps AI and the wider internet running. Investors who understand the routers, optical links and rack servers behind that scramble may find interesting angles. This article walks through three stocks from the AI networking and data center hardware universe that may be worth a closer look.
The three stocks below are just a starter pack. The full screen surfaced 137 more companies with equally detailed stories across switches, optics and server manufacturing that are not covered here. To go wider than this shortlist and identify which AI hardware players fit your own filters, head straight into the AI - Networking and Servers screener .
Adtran Networks (XTRA:ADV)
Adtran Networks develops optical and Ethernet networking gear that moves data between telecom carriers, enterprises and data centers, with its open optical and DWDM transport lines directly tied to AI data-center interconnects. The group generated about €509 million from optical networking equipment and has a market value of roughly €1.1b.
Adtran Networks gives you exposure to the plumbing that keeps AI models talking to each other, from open line systems to DWDM optics that link data centers at high speed. Recent progress toward profitability suggests that the AI backbone story is still evolving, and its direction depends in part on how one currently unseen pressure develops.
To see how that pressure could reshape margins and capital needs, go straight to the Adtran Networks financial health report for the numbers behind Adtran Networks' AI backbone story.
Hamamatsu Photonics K.K (TSE:6965)
Hamamatsu Photonics K.K supplies high performance photodiodes, image sensors and other photonics parts that slot into data center optical transceivers and test gear. Its broader opto semiconductor products generate about ¥88.6 billion, alongside ¥77.7 billion from Electron Tube and ¥35.7 billion from Imaging and Measurement Instruments. The business is valued at roughly ¥613.4 billion today.
Hamamatsu Photonics K.K matters for this AI networking screen because its sensors and opto semiconductors sit inside the optical links that move data around hyperscale servers. The stock trades on a premium P/E and depends on how the unresolved balance between growth expectations and return on equity develops.
That premium P/E only tells part of the story, so head to the 2 key rewards and 1 important warning sign to see how Hamamatsu Photonics K.K's expectations compare with its risk profile.
Jabil (JBL)
Jabil leans into the AI networking and servers theme through its Intelligent Infrastructure work, where it designs and assembles cloud data center server platforms and rack-scale systems for hyperscalers, alongside a broad manufacturing and engineering business. The group is valued at about US$29b.
For investors focused on the physical build out of AI capacity, Jabil offers something different. It is the contract manufacturer and systems assembler behind many of the rack-scale servers, chassis and optical rich electronics that hyperscalers need. Management has started to spell out how that pipeline might evolve.
"AI related infrastructure programs, with AI revenue guided from about US$9b in fiscal 2025 to roughly US$14.4b in fiscal 2026 and US$22.1b in fiscal 2027 along with an expanded set of hyperscale customers above US$1b each, point to a growing mix of higher value Intelligent Infrastructure work that can lift revenue and core operating margins."
The real swing factor is how that expanding AI hardware workload translates into durable margins once supply bottlenecks and capacity decisions settle in.
That margin question is exactly what the full narrative for Jabil unpacks, separating one-off contract risk from potentially accelerating AI infrastructure earnings power.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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